Why can’t I access money that I have earn’t before the age 55. For instance I’m 30 and I have a pension from an old job that is not my main pension. It has 1k in it, I could do with the money now but everywhere I look it says you can’t access it till your 55? It’s my money I don’t understand how they can keep it from me unless I pay some ridiculous early withdrawal tax of 50%?
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It’s partly to protect you from yourself.
The laws surrounding pension funds impose these penalties and restrictions. It’s generally a horrible idea to withdraw early because the entire premise is the money you put in at the beginning has 40 years to grow. For your retirement the money you put in the first decade is far more important than the money you put in in the last decade, drawing down on funds at age 30 almost guarantees you’re dying in abject poverty in old age.
If enough people do this (and they would if allowed) it becomes a big enough problem that the government will need to take action with taxpayer money, hence the government interest in trying to prevent you from tapping into the pension funds before you retire.
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